Global Indemnity Group(GBLI) - 2025 Q1 - Quarterly Report

Item 1. Financial Statements This section presents Global Indemnity Group, LLC's unaudited consolidated financial statements for Q1 2025, including core statements and notes Consolidated Balance Sheets The consolidated balance sheets show a slight decrease in total assets and equity, with increased cash and cash equivalents Consolidated Balance Sheet Highlights (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | Change | | :-------------------- | :------------- | :---------------- | :----- | | Total assets | $1,713.6M | $1,731.3M | $(17.6M) | | Total liabilities | $1,026.6M | $1,042.1M | $(15.5M) | | Total shareholders' equity | $687.1M | $689.1M | $(2.1M) | | Total investments | $1,351.7M | $1,423.6M | $(71.9M) | | Cash and cash equivalents | $81.1M | $17.0M | $64.1M | | Unpaid losses and loss adjustment expenses | $794.8M | $800.4M | $(5.5M) | - Total assets decreased by $17.6 million, primarily driven by a decrease in total investments, partially offset by a significant increase in cash and cash equivalents[9] Consolidated Statements of Operations Consolidated operations show a significant Q1 2025 profitability decline, with a net loss and higher expenses Consolidated Statements of Operations Highlights (Q1 2025 vs. Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | :--------- | | Gross written premiums | $98.7M | $93.5M | $5.2M | 5.5% | | Net earned premiums | $93.3M | $96.6M | $(3.3M) | (3.4%) | | Total revenues | $108.7M | $112.3M | $(3.6M) | (3.2%) | | Net losses and loss adjustment expenses | $66.7M | $53.4M | $13.4M | 25.0% | | Corporate expenses | $9.5M | $6.4M | $3.1M | 49.1% | | Net income (loss) | $(4.0M) | $11.4M | $(15.4M) | (135.1%) | | Basic EPS | $(0.30) | $0.83 | $(1.13) | (136.1%) | | Diluted EPS | $(0.30) | $0.82 | $(1.12) | (136.6%) | - The company reported a net loss of $4.0 million in Q1 2025, a significant decline from a net income of $11.4 million in Q1 2024, primarily due to a 25.0% increase in net losses and loss adjustment expenses and a 49.1% rise in corporate expenses[11] Consolidated Statements of Comprehensive Income (Loss) Comprehensive income shifted to a loss in Q1 2025, driven by net loss despite other comprehensive income growth Consolidated Statements of Comprehensive Income (Loss) Highlights (Q1 2025 vs. Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | :--------- | | Net income (loss) | $(4.0M) | $11.4M | $(15.4M) | (135.1%) | | Other comprehensive income, net of tax | $3.5M | $2.9M | $0.6M | 21.9% | | Comprehensive income (loss), net of tax | $(0.5M) | $14.2M | $(14.7M) | (103.5%) | - Despite an increase in other comprehensive income (net of tax) by 21.9%, the company's comprehensive income (loss) significantly declined from a gain of $14.2 million in Q1 2024 to a loss of $0.5 million in Q1 2025, driven by the net loss for the period[15] Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity increased year-over-year due to paid-in capital and retained earnings, despite a current quarter net loss Consolidated Statements of Changes in Shareholders' Equity Highlights (Q1 2025 vs. Q1 2024) | Metric (in thousands) | March 31, 2025 | March 31, 2024 | Change ($) | | :-------------------- | :------------- | :------------- | :--------- | | Total shareholders' equity (End of Period) | $687.1M | $659.5M | $27.6M | | Additional paid-in capital (End of Period) | $463.1M | $456.2M | $6.9M | | Retained earnings (End of Period) | $259.6M | $251.5M | $8.1M | | Net income (loss) | $(4.0M) | $11.4M | $(15.4M) | | Distributions to shareholders | $(5.0M) | $(4.8M) | $(0.2M) | - Total shareholders' equity increased by $27.6 million year-over-year, primarily due to an increase in additional paid-in capital and retained earnings, despite a net loss in Q1 2025[18] Consolidated Statements of Cash Flows Operating cash flow significantly decreased in Q1 2025, largely offset by investing activities, boosting cash and equivalents Consolidated Statements of Cash Flows Highlights (Q1 2025 vs. Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------- | :-------- | :--------- | :--------- | :--------- | | Net cash provided by operating activities | $2.4M | $22.7M | $(20.3M) | (89.4%) | | Net cash provided by (used for) investing activities | $66.8M | $(16.9M) | $83.8M | 494.5% | | Net cash used for financing activities | $(5.1M) | $(4.9M) | $(0.2M) | 3.8% | | Net change in cash and cash equivalents | $64.1M | $0.8M | $63.3M | 7721.6% | | Cash and cash equivalents at end of period | $81.1M | $38.9M | $42.3M | 108.8% | - Net cash provided by operating activities decreased significantly by 89.4% in Q1 2025 compared to Q1 2024, primarily due to increased net losses and loss adjustment expenses paid. However, net cash from investing activities saw a substantial positive swing, leading to a large net increase in cash and cash equivalents[21][173] Notes to Consolidated Financial Statements (Unaudited) This section provides detailed disclosures and explanations for the unaudited consolidated financial statements 1. Principles of Consolidation and Basis of Presentation This section outlines the company's consolidation principles and financial statement presentation basis - Global Indemnity Group, LLC is a Delaware limited liability company, publicly traded on the NYSE under GBLI (excluding Class A-2 shares). The interim consolidated financial statements are unaudited and prepared in conformity with GAAP, requiring management estimates[22][23] - The consolidated financial statements include Global Indemnity Group, LLC and its wholly-owned subsidiaries, with all intercompany balances and transactions eliminated[25] 2. Investments This section details the company's investment portfolio, including fixed maturities, equity securities, and alternative investments Total Fixed Maturities (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------- | :---------------- | :--------- | :--------- | | Amortized Cost | $1,323.7M | $1,394.6M | $(71.0M) | (5.1%) | | Estimated Fair Value | $1,315.4M | $1,381.9M | $(6